INSTITUTIONAL AND ECONOMIC ARCHITECTURE OF EFFECTIVE HUMAN CAPITAL DEVELOPMENT IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT
Abstract
The article develops a conceptual institutional and economic framework for human capital development based on the establishment of a specialized commercial institution responsible for long-term supervision, management, and investment in household development. The study aims to design a coherent systemic concept that aligns the incentives of households, private development institutions, and the state in order to ensure sustained growth in competencies, physical and psychological health, subjective well-being, and socio-cultural integration. The proposed approach redefines human capital development as a structured, measurable, and economically incentivized process rather than a fragmented domain of social policy, thereby creating the institutional preconditions for coordinated long-term investment in human potential and social stability. The scientific contribution of the research lies in conceptualizing human capital development as an object of systematic private governance supported by clearly articulated economic incentives and coordinated market and public regulatory mechanisms. The concept introduces an index-based regulatory architecture in which measurable development indicators perform both analytical and incentive functions, thereby linking institutional performance and public financial support to demonstrable developmental outcomes and strengthening the transparency and accountability of development institutions. The practical relevance of the concept consists in its potential to establish an outcome-oriented system of long-term human capital investment grounded in measurable performance metrics and institutional accountability. The implementation of the proposed framework is expected to enhance the efficiency of investments in health, education, and social integration, strengthen labor market resilience under conditions of technological transformation and structural economic change, and contribute to the formation of an economy centered on sustainable human development, long-term social stability, and an improved quality of life.
References
Bidadanure J. Universal Basic Income: A Theory of Justice. Annual Review of Political Science. 2019. Vol. 22. P. 481–501.
Brynjolfsson E., McAfee A. The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. New York: W. W. Norton, 2014.
Cappelli P. Talent on Demand. Boston: Harvard Business School Press, 2008.
Castells M. The Rise of the Network Society. 2nd ed. Oxford: Blackwell, 2010.
De Stefano V. The Rise of the “Just-in-Time Workforce”. Comparative Labor Law & Policy Journal. 2016. Vol. 37(3). P. 471–504.
Diener E., Suh E., Lucas R., Smith H. Subjective Well-Being: Three Decades of Progress. Psychological Bulletin. 1999. Vol. 125(2). P. 276–302.
Forget E. L. The Town with No Poverty: The Health Effects of a Canadian Guaranteed Annual Income Field Experiment. Canadian Public Policy. 2011. Vol. 37(3). P. 283–305.
Garavan T., Carbery R., Rock A. Mapping Talent Development. European Journal of Training and Development. 2012. Vol. 36(1). P. 5–24.
Hanushek E. A., Woessmann L. The Economics of International Differences in Educational Achievement. Handbook of the Economics of Education. 2011. Vol. 3. P. 89–200.
Heckman J. J., Kautz T. Hard Evidence on Soft Skills. Labour Economics. 2012. Vol. 19(4). P. 451–464.
Helliwell J. F., Layard R., Sachs J. (eds.). World Happiness Report. New York: SDSN, 2012–2024.
Kahneman D., Deaton A. High Income Improves Evaluation of Life but Not Emotional Well-Being. Proceedings of the National Academy of Sciences. 2010. Vol. 107(38). P. 16489–16493.
Kalleberg A. L. Precarious Work, Insecure Workers. American Sociological Review. 2009. Vol. 74(1). P. 1–22.
Kangas O., Jauhiainen S., Simanainen M., Ylikännö M. The Basic Income Experiment 2017–2018 in Finland. Helsinki: Ministry of Social Affairs and Health, 2020.
Layard R. Happiness: Lessons from a New Science. London: Penguin Books, 2005.
Mincer J. Schooling, Experience, and Earnings. New York: Columbia University Press, 1974.
North D. C. Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press, 1990.
OECD. How’s Life? Measuring Well-being. Paris: OECD Publishing, 2020.
OECD. How’s Life? 2024. Paris: OECD Publishing, 2024.
OECD. Skills Outlook 2019: Thriving in a Digital World. Paris: OECD Publishing, 2019.
Peck J., Theodore N. Workfare States. New York: Guilford Press, 2001.
Pfeffer J. Dying for a Paycheck. New York: Harper Business, 2018.
Polanyi K. The Great Transformation. Boston: Beacon Press, 1944.
Schultz T. W. Investment in Human Capital. The American Economic Review. 1961. Vol. 51(1). P. 1–17.
Sen A. Development as Freedom. New York: Alfred A. Knopf, 1999.
Senge P. The Fifth Discipline: The Art and Practice of the Learning Organization. New York: Doubleday, 1990.
Srnicek N. Platform Capitalism. Cambridge: Polity Press, 2017.
World Economic Forum. The Future of Jobs Report 2023: Digest. Geneva: WEF, 2023.
World Health Organization. Depressive Disorder (Depression): Fact Sheet. Geneva: WHO.
World Health Organization. Over a Billion People Living with Mental Health Conditions. Geneva: WHO.
World Economic Forum. The Future of Jobs Report 2023. Geneva: WEF, 2023.
Copyright (c) 2026 Леся Тараєвська, Роман Литвинець
This work is licensed under a Creative Commons Attribution 4.0 International License.
